[SMM Analysis] In May 2025, SMM's total domestic lithium carbonate production decreased by 2% MoM and increased by 15% YoY

In May 2025, SMM's total lithium carbonate production decreased by 2% MoM and increased by 15% YoY. Due to the significant decline in lithium carbonate prices in May, the monthly average price fell by over 10% MoM compared to April. Some non-integrated lithium chemical plants, unable to withstand the cost pressure, reduced or halted production. Coupled with the production reductions from some lithium chemical plants due to production line maintenance, the total lithium carbonate output in May showed a slight decline, though the overall volume remained at a high level.

By raw material type, the total production of lithium carbonate derived from spodumene in May decreased by 4% MoM. Although some lithium chemical plants had reduced their output due to cost issues or production line maintenance, the stable production of integrated enterprises provided strong support for the output of lithium carbonate derived from spodumene, limiting the decline in production. The total output of lithium carbonate derived from lepidolite showed a slight increase, up 2% MoM, benefiting from the continuous ramp-up of production at leading lithium chemical plants. The rising temperatures in salt lake regions in May boosted the output of lithium carbonate, with overall production increasing by 3% MoM. The total output volume in the recycling sector decreased significantly in May, down 16% MoM. The main reason was that, amidst the sharp decline in lithium carbonate prices, the prices of scrap and black mass did not fall in tandem, leading to severe losses for recycling sector lithium chemical plants and a substantial reduction in output. Overall, the total lithium carbonate output in May decreased by 2% MoM and increased by 15% YoY.